SERIES 1 - Blackmore International Internatio… · Blackmore Bond plc has already undertaken...

SERIES 1

INTERNATIONAL

“It is our ambition to be one of the top 10 house

builders in the UK within 5 years.”

Patrick McCreesh, CEO, Blackmore Group

CONTENTSWELCOME TO BLACKMORE INTERNATIONAL

THE BLACKMORE BOND - KEY FEATURES

THE BLACKMORE GROUP OF COMPANIES

BLACKMORE IN NUMBERS

HOW DOES THE BOND WORK?

HOW SECURE IS THE BOND?

INVESTMENT PROCESS

THE BLACKMORE INVESTOR PORTAL

KEY PARTNERS

GLOBAL OFFICES

CURRENT DEVELOPMENTS

FAQs

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Blackmore International is a wholly-owned subsidiary of The Blackmore Group - a real estate investment house built to maximise opportunities within the highly profitable UK property market.

The Blackmore Group is a rapidly growing UK real estate development business which has as its strategic aim to become one of the top ten housebuilders in the UK in the next two years.

Having raised tens of millions of pounds over the past years in both the institutional and retail sectors, the Blackmore Group’s growth can be attributed to its core values of research-driven, managed portfolios. It now has almost £64 million of assets under management.

Blackmore Bond plc has already undertaken successfully a series of fundraisings through the issue of its Series 1 to 6 bonds. As a result of this success, Blackmore Group Limited has resolved to create Blackmore International, as a newly incorporated company. This enables the core strategy of Blackmore Bond plc and its product offerings, in terms of investment opportunities, to be offered exclusively to those resident in jurisdictions outside the United Kingdom, whilst having investor protection features which the Board believes are more relevant to the international market.

Choose from our secured fixed-rate investments:

5 YEAR

FIXED-RATE BOND

9.9%Interest paid quarterly9.9

3 YEAR

FIXED-RATE BOND

7.9%Interest paid quarterly7.9

Base Currency GBP

Entry Level GBP 25,000

Security Asset Backed | Security Trustee | Insurance Policy

Suitability Not available for UK residents Payment Frequency Quarterly

Total Raise GBP100m

KEY BOND FEATURESWELCOME TO BLACKMORE INTERNATIONAL

“The bond is fully protected by Standard & Poors A or A+ rated insurers.”

Policy provided by Williis Towers Watson

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BLACKMORE INNUMBERS

THE BLACKMORE GROUP OF COMPANIES

®

INTERNATIONAL

WHY BE PART OF OUR JOURNEY

Earn a high interest regular income over 3 or 5 years.

Receive quarterly payments into your nominated bank account with peace of mind knowing that Blackmore have never missed a coupon payment in our history.

Gain access to the highly profitbale UK property market with a low entry level of just £25,000.

Benefit from a fully protected investment with multiple layers of security and an insurance policy provided by one of the world’s leading insurers.

We put our clients’ needs first and pride ourselves on answering all questions and queries as a matter of urgency.

Blackmore uploads regular and transparent updates regarding your investment via our bespoke online investment portal.

Clear and straightforward exit plan in place.

100%Track record of making

client payments on time

£4.25mInterest paid out to

investors since 2016

18Projects completed

in 2 years

53% Average return

on capital deployed

£64m Current Group

AUM

12Current projects in development

£80m Gross Development

Value

£245mPipeline of

development projects

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HOW DOES THE BOND WORK?

Independent Security Trustee

An independent Security Trustee,International Administraton Group (IAG), controls and monitors the security, acting solely in the interests of the bondholders.

Risk Mitigation

Our committee evaluate each potential development against stringent criteria. We only develop property in the UK.

Experienced Management Team

Including regulated professionals with responsibility for multi-billion pound assets under management and the previous head of Residential Capital Markets & Investments for the global bank, BNP Paribas.

Asset-Backed

Investors have a legal charge over the assets of Blackmore. In the event of business insolvency, the sale of these assets contribute towards paying back our investors’ capital.

The Company has put in place an insurance policy through UK based A or A+ (Standard and Poor’s) rated insurers via Willis Towers Watson.

Insurance

Blackmore aims to protect investors capital through stringent due diligence of the development projects it undertakes and all our products offer final income returns.

HOW SECURE IS THE BOND?

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INVESTMENT PROCESS

Blackmore employs a strict and robust investment process to ensure that all investments are fully analysed, and due diligence is conducted at the highest level before the investment is completed.

All investments must be approved by The Blackmore Investment Committee and The Blackmore Investment Team.

Executive Directors

BM Head of Real Estate

Investment Managers

Independent Construction Firms

Specialist Advisors

BNP Paribas

Project Managers

Specialist Analytics Advisors

THE BLACKMORE INVESTMENT COMMITTEE

With regards to a specific potential project, Blackmore employ a Five-Tier System in order to maximise effective due diligence, while minimising associated costs.

THE BLACKMORE INVESTMENT TEAM

THE BLACKMORE FIVE-TIER SYSTEM

Key construction partners provide a breakdown of development costs and local property specialists calculate the estimated best and worst-case exit values. These figures are stress-tested to allow for an increase and decrease in market value.

1SITE SOURCED IN ACCORDANCE WITH PROFITABILITY MODEL

Key strategy is to obtain the site for a minimum of 10% below market value. Independent RICS-certified valuers visit the site and produce a report and recommendation. Lawyers are also instructed to complete full due diligence and assess viability for planning permission.

2NEGOTIATION WITH THE VENDOR

Blackmore’s Investment Committee evaluate the project and if it meets all criteria (352 sites have so far been rejected), the Directors then make the final decision as to whether an offer is submitted.

3EVALUATION

Upon completion of obtaining the site, Blackmore appoint an outsourced planning specialist to construct the planning application. Once this is confirmed, the site typically sees an immediate increase in value.

5OBTAINING THE SITE

After submitting an offer, Blackmore may decide that leverage is to be sought and an independent commercial finance broker is used to source the best value deal on the market. A lender is then engaged and the full due diligence pack is handed over for them to complete their own independent set of checks and evaluation. Once an offer is obtained, final profit projections can be completed showing full potential return on capital and any risks involved. Upon agreement by the Investment Committee, it is then referred to the Directors to decide on whether to proceed with the transaction.

4FINANCING

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Blackmore strongly believe in offering full transparency to our partners and investors. This is demonstrated by the recent launch of The Blackmore Portal – a unique tool that provides all investors with a secure online investment portfolio account.

THE BLACKMORE PORTALHOW TO GET STARTED

Our straightforward application process can be completed at www.blackmoreinternational.com

If you would like to know more or require assistance, please contact us.

TELEPHONEUK : +44 800 041 8163UAE : +971 4 432 2521

[email protected]

WEBSITEwww.blackmoreinternational.com

1APPLY DEPOSIT FUNDS

2 RECEIVE INTEREST OF UP TO 9.9%

3 OPTION TO RE-INVEST

4Online application system.

SSL Encryption technology.

Track and monitor the balance of your investment portfolio.

Check for upcoming interest payment dates and access to e-statements.

Receive regular updates and news direct from the Blackmore Team.

Stay informed on the progress of all individual sites purchased and developed by Blackmore.

FEATURES:

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PROPERTY DEVELOPMENT - Countrywide is a leading provider of residential development and consultancy practices coupled with providing surveying services, corporate property services, leasehold estate management and auctions, serving most major lenders, investors, house builders, corporations, local authorities and housing associations.

SOLICITORS - Squire Patton Boggs, an international law firm with 47 offices in 20 countries. Ninth largest US law firm in London and 35th in the Global 100. Squire Patton Boggs are used for corporate and financial services regulatory matters. Other firms of solicitors are used for day-to-day property acquisitions and disposals.

AUDITORS - Grant Thornton UK LLP, an independent audit, tax and advisory firm, estab-lished in 1924; the sixth largest accounting network in the world with revenue of £1.09 billion.

SECURITY TRUSTEE - International Administration Group (IAG) has been appointed as an independent Security Trustee, monitoring and holding the security and operating purely in the interests of Bondholders, as opposed to the Company. Founded in 2000, IAG has administered over 400 funds and currently has over £12 billion of assets un-der administration. International Administration Group (Guernsey) Limited (registration number 36305) is licensed by the Guernsey Financial Services Commission under The Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended, and The Regula-tion of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000.

REAL ESTATE - BNP Paribas Real Estate is one of the largest real estate advisory firms in the world. The Residential Capital Markets division of BNP Paribas Real Estate has been selected to act as a strategic real estate adviser to Blackmore Group, in order that it may benefit from their detailed market analysis and advice at every stage of the investment cycle. BNP Paribas Real Estate will source potential sites and undertake full due diligence analysis including searches, valuation, construction cost analysis, demographic analysis and exit strategy (including pre-sale introductions). BNP Paribas Real Estate’s connections with institutional landlords, banks and investment funds, together with its capital markets network connections mean that it has a regular supply of both products and purchasers.

KEY PARTNERS

INSURERS - Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets.

The company design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance.

REAL ESTATE ADVISOR - JLL is the 3rd largest publicly traded commercial real estate brokerage firm in the world. The company’s real estate services include agency leasing, capital markets, tenant representation, real estate investment banking / merchant banking, property management, corporate finance, facilities management / outsourcing, hotel advisory, project and development management / construction, energy and sustainability services, valuations, value recovery and receivership services, consulting and investment management.

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As one of the UK’s fastest growing property companies, The Blackmore Group has undergone a rapid transformation having expanded our Manchester HQ as well as our Mayfair Office which is conveniently located in the heart of London.

With our new International Sales Office in Dubai, we have underlined our commitment to providing our global clients and partners with a truly world class service, no matter where in the world they are located.

Due to increased demand, Blackmore are now in the process of establishing offices in Japan and Hong Kong, with further plans to expand into Singapore and South Korea.

JAPAN LAUNCHING1st May 2019

HONG KONGCOMING SOON

DUBAIAddress: Jumeirah Business Centre 2,

Office 1409, Cluster V, Jumeirah Lake Towers, PO Box 487838,

Dubai, UAEPhone: +971 4432 2521

SOUTH KOREACOMING SOON

GLOBAL OFFICES

LONDONAddress: Green Park House, 15

Stratton Street Mayfair, W1J 8LQ, London, United Kingdom

Phone: +44 800 131 0100

MANCHESTERAddress: XYZ Building,

3 Hardman Street, M3 3EB,Mancherter, United KingdomPhone: +44 800 131 0100

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18LIVE SITES REPORT

Purchase Cost£1,325,000.00

Total Costs£8,623,718.00

Blackmore Gross Profit£1,541,878.78

GDV£8,812,368.00

Capital Employed£2,725,914.00

Project duration27 months

HOLLOWAY HEAD, BIRMINGHAM B1

Deal Type

Joint Venture

Stage

Exchange and completion

Estimated Margin£188,650.00

Blackmore Cap Employed %31.61%

Return on Capital Employed56.56%

Total Blackmore funds received at exit£4,267,792.78

Estimated Margin %2%

3rd Party Capital Employed %68.39%

OAKSHADE RD, OXSHOTT, LEATHERHEAD

Deal Type

Joint Venture

Stage


GDV£5,600,000.00




Blackmore Gross Profit£484,049.00



Estimated Margin %



17%

Capital Employed 3rd Party %76.43%


CURRENT DEVELOPMENTS

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LIVE SITES REPORTGDV£15,300,000.00



STEVENAGE LAND AT SIX HILLS HOUSE

Estimated Margin£2,223,187.00






Deal Type

Unconditional deal

Stage





COLYTON

GDV£705,000.00

Purchase Cost£145,000.00

Capital Employed£233,847.00

Total Costs£594,347.00



Total Blackmore funds received at exit£344,500.00

Estimated Margin %



16%



Deal Type

Unconditional deal

Stage

Build phase

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OTTERFORD







Deal Type

Unconditional deal

Stage

Build phase



Blackmore Gross Profit£569,602.00LIVE SITES REPORT

ST AUGUSTINE’S CHURCH

GDV£1,881,752.00







Estimated Margin %



15%



Deal Type

Unconditional deal

Stage

Build phase

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CHAPEL HILL, ALSTON BANK







Deal Type

Unconditional deal

Stage

Build phase




CHILDWALL, LIVERPOOL

GDV£7,597,650.00







Estimated Margin %



18%



Deal Type

Unconditional deal

Stage

Build phase

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BURTON LATIMER, KETTERING







Deal Type

Joint Venture

Stage

Build phase




THE PARK, EALING, WEST LONDON

GDV£12,485,000.00







Estimated Margin %



19%



Deal Type

Unconditional deal

Stage

Build phase

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FUSION COURT, LONDON







Deal Type

Forward commitment

Stage

Build phase



Blackmore Gross Profit£1,173,000.00LIVE SITES REPORT

HIGH HALDEN, KENT

GDV £2,895,000.00







Estimated Margin %

Estimated Margin Blackmore Cap Employed %

Capital Employed 3rd Party %


Deal Type

Unconditional deal

Stage

Build Phase

£673,964.00 50%

30.3% 54.2%

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FAQs

1. No set up fees or on-going management fees.

2. Dedicated Account Manager upon application.

3. Choose between fixed terms of 3 or 5 years.

4. Investors receive fixed-rate returns which do not fluctuate for the term of

the investment.

5. Investors enjoy competitive rates of either 7.9% or 9.9% per annum

depending on the term selected.

6. Investments in Bonds are protected by a multi-layered security scheme. Not

covered by the Financial Services Compensation Scheme or any similar scheme

in any other jurisdiction.

7. Investor interest is paid directly into your bank account.

WHAT ARE THE KEY FEATURES OF THE BONDS?

WHAT INTEREST RATES DO I RECEIVE?

Term 3 YEAR 5 YEAR

Interest rate 7.9% 9.9%

When is interest paid? Quarterly Quarterly

Interest is paid quarterly, directly into your bank account.

The interest rates are fixed to 7.9% (3-year term) and 9.9% (5-year term) for

this series of bonds in issue. The Company reserve the right to adjust the

interest rates offered in future bond issues. The likelihood is that the interest

rates of future bond issues will be lower than the rates currently on offer.

IS IT REALLY A FIXED RATE OF RETURN?

Interest will be paid every three months on the following days: 31 January,

30 April, 31 July and 31 October (or the next working day on which United

Kingdom clearing banks are open for business).

Interest will be calculated from the date your application has been accepted.

Your first payment will be calculated on a pro-rata basis.

Interest will be paid directly into the bank account you nominate. This must be

an account in your name.

WHEN WILL I RECEIVE MY INTEREST?

The Company does not charge you any fee to invest in Bonds. You may be

charged a fee under your relationship with your professional advisor. You must

check this yourself with your adviser.

DO I HAVE TO PAY ANY FEES OR CHARGES TO INVEST IN BONDS?

As the investment opportunity is not available to United Kingdom residents,

investors must seek their own tax advice as to how income generation and

capital investments are treated in their own jurisdiction.

However, 20% tax must be deducted from interest as an HMRC requirement

save where appropriate creditor certificate or non-UK residency

documentation has been completed as part of the sign-up process.

This is not a comprehensive summary of all technical aspects of the taxation

of the Company and the Bonds and is not intended to constitute tax advice

to Investors. Prospective Investors should familiarise themselves with and,

where appropriate, consult their own professional advisors on the overall tax

consequences of investing in the Bonds.

HOW IS TAX MANAGED?

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We have a multi-layered security scheme in place to assist with our Investors’

protection. We aim to protect your capital in the following ways:

1. Investors have a legal charge over the assets of the Company. In the event

of business insolvency then the sale of these assets goes towards paying back

our Bondholders’ capital. Please note that where there is bank borrowing, the

Bondholders will rank second in order of priority over the charge.

2. Should the sale of these assets not be enough to pay our Investors back

in full then further protection may be available to the Company (thereby

increasing the amount of assets available for distribution to Bondholders (if

any)) through Bondholders (or the Security Trustee on their behalf) bringing

a claim under the Willis Towers Watson arranged insurance policy, details of

which can be found within the Information Memorandum.

3. An independent Security Trustee – International Administration Group – will

monitor and control the security, acting solely in the interests of Bondholders

and not for the Company.

IS MY CAPITAL PROTECTED?

Put simply, no. You must be very certain that you will not require your money

until the term expires. It will not be possible to access your capital before

the end of the investment term, so you must be very certain that you will not

require your money until the term expires. The only exception to this is in

the event of the death of a bond holder where the Company may agree to a

redemption or transfer to a beneficiary only.

CAN I GET ACCESS TO MY MONEY EARLY?

You can invest more capital in the bonds if you choose to, either at the same

term or a different one. This will not be by way of a top up of the existing

investment, it will be necessary to place an additional investment. Please note

that the minimum investment each time will be £25,000.

If you wish to invest more simply apply through the Blackmore Portal using

your unique login-code, or give us a call on +44 800 041 8163 and we will be

happy to help.

CAN I ADD EXTRA FUNDS TO MY BOND/CAN I TOP UP MY BOND?

To invest you must read this Information Memorandum in full and complete the

online application which can be found at wwww.blackmoreinternational.com

Investment in Bonds is not suitable for all, eligibility is checked during the

application process. The investment is not available to residents of the United

Kingdom.

HOW DO I APPLY?

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